Saracens will receive a six-figure sum from the Rugby Football Union for releasing Andy Farrell from his notice period after it was announced he will be rejoning England next week.

Farrell, who was part of England's interim management team during the Six Nations only to subsequently turn down the offer of a full-time role as defence coach, stunned Saracens last month by handing in his notice as head coach.

He had not only pledged his future to the club after being wooed by England, but the week before his resignation had played a leading role in drawing up plans for Saracens' campaign next season.

Farrell will start work with England on Monday, joining the head coach Stuart Lancaster and the forwards coach Graham Rowntree. His return does not necessarily mean the end of Mike Catt's short stint with the national squad after taking charge of the backs on this month's tour to South Africa.

Lancaster said he was considering adding to his management team. Catt, whose prime interest is in attacking play, would complement Farrell rather than clash with him.

"I will continue to review the make-up of the coaching team over the next few weeks to ensure that England has the best structure and personnel," said Lancaster.

"I am delighted that we have got Andy on board. He is a special coach and an individual and the way this team has developed is a testament to the foundations that we laid in the Six Nations. Andy, Graham and I work well together and I am looking forward to carrying on that close relationship as we build towards a home World Cup."

When Farrell turned down England originally, it was seen as frustration due to the protracted compensation negotiations between the RFU and Saracens. The club concluded that the union was in no hurry to conclude a deal and that got back to Farrell.

Having committed himself to Sarries for the next two years, he had a change of mind at the end of the season and gave the club six months' notice. It is understood that the RFU will pay half a year's salary to Saracens, more than £100,000, for releasing Farrell from his notice period.

"I loved every minute of coaching England and working with Stuart and Graham and the players in the Six Nations," said Farrell. "To get the opportunity to do it permanently is a dream. I watched England in South Africa and I am massively excited about the potential that was clearly evident in the three Tests and midweek matches.

"I had seven very special years with Saracens and the club will always have a fond place in my heart. I am grateful for the help they have given me as a player and a coach and I wish everyone involved the best in the future."

Farrell's first task will be to help Lancaster and Rowntree select an England squad of 32 players for next season as well as the 32 who will be part of the Saxons setup. The 64 names will be announced at the end of next week but will not include two veterans, the outside-half Charlie Hodgson and the hooker Lee Mears, who on Thursday both announced they had retired from international rugby.